Background

The power station is sponsored by Jhabua Power of Avantha Power and Infrastructure. In July 2015 it was reported that Avantha was burdened with debt, and looking to sell assets to raise cash. The private-equity arm of the Industrial Credit and Investment Corporation of India Bank, along with Tata Power, were in advanced talks to acquire phase I (600 MW) and phase II (600 MW) of Avantha's Seoni project.[3]

However, talks for a third party to acquire Avantha's debt fell through. In November 2018, Avantha offered to pay Rs 24.30 billion to lenders to escape insolvency proceedings for its Seoni plant. The plant is being put up for sale.[4] The plant is one of the country's 34 stressed, non-performing power assets.[5]

Phase 1

Phase 1 of the project is a 600 MW subcritical unit.[2][6] According to a timeline posted on the Avantha website, construction began in April 2011 and was ongoing in May 2013.[7]

In 2012 it was reported that construction of unit 1 was facing delays due to opposition from local residents "right from the beginning." The project had resistance from farmers over land acquisition, who have alleged inadequate compensation and high handedness by the plant authorities, leading to protests.[8]

According to the EIA for phase II in May 2013, Unit 1 was still under construction.[9]

According to the India Ministry of Power (March 2015), unit 1 is planned for commissioning in December 2015,[10] later pushed to March 2016.[11]

Phase 2

Phase 2 of the project is a 600 MW supercritical unit. The sponsor was soliciting bids for this phase in February 2012.[2]

Phase II received environmental clearance in August 2014,[13][3] which was extended to Jhabua Power in February 2016.[14]

As of August 2018, there is no estimated date for completion of phase II, and it is not listed as under construction.[15] It is likely shelved due to the sponsor's financial problems.

Project Details

Sponsor:Jhabua PowerParent company:Avantha Power and InfrastructureLocation: Barela and Gorakhpur villages, about 10 km north-northwest of Ghansore in the Seoni district of Madhya Pradesh, IndiaCoordinates: 22.7354787, 79.9123406 (exact)Status: